Servitization in Manufacturing - The case of ABB Kabeldon

Abstract: In this qualitative case study, the phenomenon of servitization is analysed for ABB Kabeldon, a conventional manufacturer located in Sweden, with the purpose of finding the factors that influence the servitization potential of cable distribution cabinets and how best to address them. The conclusion reached is that the factors can be divided into key motivators, the rationale for the strategy, and challenges, the hurdles that lead some companies to a service paradox. In this case, the key motivators consist of profitability, customer relationships, and competitive advantage. The challenges comprise customer management, business model, development process, organisational structure, regulations, market readiness, and value chain. The last three challenges emerged from the empirical analysis and all other factors were present in the literature and empirically.